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January 19, 2023
Equity, also known as shareholders' equity (or owners' equity for privately held corporations), is the amount of money returned to a company's shareholders if all of its assets are liquidated and all of its debts were paid off in the event of dissolution. In the case of an acquisition, it is the value of the company's sales less any liabilities owed by the company that was not transferred with the sale. Furthermore, shareholder equity can represent a company's book value. Equity can occasionally be used as a form of payment-in-kind. It also denotes the proportionate ownership of a company's shares. Equity is one of the most famous pieces of data used by analysts to measure a company's financial health and may be found on its balance sheet.